Vertex Pharmaceuticals Could Hit $100 On Positive Results From Cystic Fibrosis Treatment; Shares up 6%Chris Middlebrooks (Author) Published Date : Jun 17, 2014 09:49 ET
Shares of Vertex Pharmaceutials (VRTX) are up another 6% Thursday and have pierced the 50-day moving average at $68.58 after a Seeking Alpha article claims that positive test results from Kalydeco could propel the stock to $100. Kalydeco is VRTX's cystic fibrosis treatment that, in combination with lumacaftor, has recently completed Phase III studies, known as the Traffic and Transport trials. Seeking Alpha suggests that if the results of the trial are positive, the treatment could generate an additional $7 billion in revenue for Vertex by 2019, driving the share price to $100. Therefore, Seeking Alpha considers Vertex a low-risk/high-return investment with a 20% chance for a 50% decline in the stock price if Phase III results disappoint. Trial results are expected any day. Shares of VRTX last traded at $71.07 with a 52-week range of $58.06 to $89.96.
Vertex Pharmaceuticals Could Hit $100 On Positive Results From Cystic Fibrosis Treatment; Shares up 6%